Pennsylvania man sentenced for illegal exports

Friday, January 18, 2013

The U.S. Commerce Department said a North Wales, Pa. man was sentenced Thursday to 42 months in jail on five counts of violating the International Emergency Economic Powers Act (IEEPA).
Timothy Gormley, 52, was employed by Amplifier Research in Souderton, Pa., a manufacturer and supplier of microwave amplifiers with both domestic and overseas customers. On Nov. 30, 2011, Commerce’s Office of Export Enforcement received a voluntary self-disclosure from Amplifier Research.
Many of the firm’s products are classified under an Export Control Classification Number and require a license for export to most destinations outside of Europe. These amplifiers are controlled for national security reasons, and have application in military systems which include radar jamming, weapons guidance systems, and other uses, the department said.
Amplifier Research became aware that Gormley had committed numerous violations of government regulations between June 7, 2006 and June 28, 2011.
Gormley pleaded guilty on Oct. 17, 2012, admitting that he had altered invoices and shipping documents to conceal the correct classification of amplifiers to be exported so that they would be shipped without the required licenses; listed false license numbers on export paperwork for defense article shipments; and lied to fellow employees about the status and existence of export licenses.
According to the Commerce Department, Gormley's actions resulted in at least 50 unlicensed exports of “national security sensitive items” to destinations including China, India, Hong Kong, Taiwan, Thailand, Russia, Mexico, and other countries.
“When Gormley admitted to the conduct, he explained it by saying he was ‘too busy’ to obtain the licenses. Gormley claimed he was overwhelmed at work and that was his only excuse,” the department said.
In handing down her sentence, U.S. District Court Judge Gene E.K. Pratter cited the risk to the community in allowing national security goods to be exported without proper licenses and the need for deterrence. In addition to the prison term, the judge ordered three years of supervised release and fined Gormley $1,000.
"As the substantial sentence in this case demonstrates, we will not allow our national security to be compromised by individuals who flout our nation's export control laws,” said Eric L. Hirschhorn, Commerce undersecretary, in a statement. “The egregious violations in this case weren’t committed by accident but were perpetrated by an informed individual who intentionally violated the law."